Overview
- Federal officials have resumed discharges under Income-Based Repayment, Pay As You Earn, and Income-Contingent Repayment after a months-long pause.
- Emails to eligible borrowers say servicers will process most IBR discharges within two weeks, with discharge data sent to servicers after October 21 unless borrowers opt out by that date.
- The Education Department and the American Federation of Teachers jointly confirmed that a borrower’s 2025 eligibility date will count as the effective date to prevent taxation.
- Federal Student Aid posted a shutdown notice stating site information may not be maintained and inquiries may go unanswered, raising the risk of processing delays that could push some relief into 2026.
- SAVE plan borrowers remain in forbearance, but those who already qualify for forgiveness can switch to IBR, PAYE, or ICR before year-end to secure tax-free relief, with roughly 2 million borrowers enrolled in IBR as of Q2 2025.